JA 20-0032B VSSM Bridge JA REDACTED.pdf

FOR OFFICIAL USE ONLY - Source Selection Information – See FAR 2.101 and 3.104

DHA PGI 206.3, Attachment 1 (06-21-2018)

Justification and Approval for Other than Full and Open Competition

J&A Tracking No. 20-0032B

1. Identification of the agency and contracting activity:

The Defense Health Agency, Enterprise Medical Support – Contracting Division (EMS-CD), plans to place an order, on a limited source basis, against a General Services Administration

(GSA) Federal Supply Schedule (FSS) contract.

2. Nature and/or Description of Action being approved:

SDD is requesting approval of this Justification and Approval (J&A) for a sole source award bridge contract to ASM Research LLC (ASM), 4050 Legato Rd, Ste. 1100, Fairfax, VA

22033-2895. This requirement is to maintain Defense Health Agency (DHA) Veterinary Services

System Management (VSSM), a Department of Defense (DoD) mission-essential program. The current support for multi-functioning devices is awarded through Task order HT0015-18-F-0120 under Indefinite Delivery Indefinite Quantity (IDIQ) contract HT0015-14-D-0001, which is currently under litigation over data rights. Given the uncertainty associated with any litigation, SDD is contemplating replacing the current VSSM program to minimize risk to the Government.

Market research and industry assessment are being conducted to identify potential commercial-off-the-shelf solutions as well as possible alternative solutions designed for the Government that can offer source code rights without the litigation risk that has arisen in connection with VSSM.

The Government intends to negotiate a Firm Fixed Price Task Order with ASM. The current

Task Order HT0015-18-F-0120 expires on 29 March 2020; ASM is the incumbent contractor.

3. Description of Supplies/Services:

This action is for the continuous maintenance of the existing DHA VSSM a DoD mission-essential program. This procurement will ensure sustainment and continued support to the functional communities. The objective of this action is to provide sustainment/maintenance/engineering-support to incorporate an efficient and streamlined process to identify, develop, and deploy system updates. This includes providing proactive monitoring, after-hours support for critical and high priority issues, deployment support, and maintenance of the system applications/interfaces. This short term bridge contract will not provide for any increases in scope beyond what’s under the current expiring IDIQ task order, HT0015-18-F-

0120. The following is the scope of the requirement:

Description Period of Performance Estimate Price

Veterinary Services System Management 03/30/2020 – 03/29/2021 $2,500,000.00

FAR 52.217-8 Extension 03/30/2021 – 09/29/2021 $1,250,000.00

$3,750,000.00

The resultant order will have a twelve months base period, and FAR 52.217-8 Option to Extend

Services will be included; FY20 O&M funding will be used.

4. Statutory and Regulatory Authority Permitting Other Than Full and Open Competition

(see FAR 6.302), or the Specification of the Statutory and Regulatory Provision Providing

Exception to 8(a) Program Competitive Requirements (see FAR 19.805-1): 10 U.S.C.

2304(c)(1) 6.302-1 – Only One Responsible Source and No Other Supplies or Services Will

Satisfy Agency Requirements. Because of the rights to the source code are a central issue in the litigation, going with any provider other than ASMR can expose the Government to greater risk of liability, since ASMR is the only company with arguable access to the source code for purposes of maintaining the current Government system. A break in service would occur if the current performance is not bridged.

5. Rationale Justifying Use of the Statutory Authority Cited:

The VSSM program addresses the Military Health System’s (MHS’s) effort to optimize data capture, data management, data analysis, and event reporting for the Department of Defense

Veterinary Service for animal care and management, as well as, animal disease prevention and control in support of the Force Health Protection (FHP) mission. The VSSM program, in addition of being a health record program, also provides a complete practice management solution. With the pendency of the litigation, the only firm available to help us maintain that system is ASM. Furthermore, the Program Management Office (PMO) is finalizing market research and requirement formulation to explore possibilities for potentially replacing the current veterinary electronic health record contract.

The current VSSM contract was awarded through HT0015-18-F-0120 on 28 September 2018 under IDIQ HT0015-14-D-0001, and the period of performance is ending on 29 March 2020. On

January 5, 2018, a company named HEALTHeSTATE, LLC filed a complaint in the U.S. Court of Federal Claims. The Government is vigorously disputing the claims made therein.

The program office is actively exploring the possibilities of utilizing another commercial solution or possible alternative solution designed for the Government to meet the requirements of

VSSM. Because of the rights to the source code are a central issue in the litigation, going with any provider other than ASMR can expose the Government to greater risk of liability, since

ASMR is the only company with arguable access to the source code for purposes of maintaining the current Government system. The purpose of this request for approval is to authorize the use of a bridge contract to ensure continuity of service. The bridge contract that will follow this approval is required to ensure the customer does not experience a break in service. ASM is the only provider positioned to provide maintenance services during the bridge period given its prior work with the system and the issues in dispute in the above mentioned litigation.

6. Efforts to Obtain Competition:

An Industry Day was conducted on 04 February 2020, and vendors with relevant veterinary management programs and applications were invited to demonstrate their approach to the

Integrated Product Team (IPT). Although none of the products and approaches that were demonstrated met Government requirements completely, the IPT identified some current commercial practices that have the potential to meet some of the requirements of the

Government, and IPT currently discussing all capabilities that should be included in the new requirement package.

7. Determination that Anticipated Cost to the Government will be Fair and Reasonable:

The Contracting Officer will determine that the anticipated cost to the Government will be fair and reasonable through a comparison and analysis of proposed prices with historical prices paid, the Contractor’s list prices, and the Independent Government Cost Estimate (IGCE).

8. Market Research:

Market research was conducted on 04 March 2020, research was conducted in the following databases: GSA eBuy, DSBS database, SBA Quick Market Research, and Ability One to determine if there were any significant market changes (i.e. technological advancements) or economic indicators that either affects price or the requirement itself, there were none. An industry day was conducted on 04 February 2020 for the purpose of identifying a possible commercial or specifically designed alternative, but the HSS Project Management Office is still analyzing the data collected; however, they identified a number of commercial capabilities as having the potential of meeting some of the Government’s requirements. Given the limited viable alternatives and the fact that the data rights for the existing veterinary services system under HT0015-18-F-0120 is currently under litigation, it is in the best interest of the Government to bridge the existing work with the incumbent vendor in order to allow time for litigation to be resolved. Therefore, based on this market research, awarding a bridge to the incumbent vendor at this time is the most advantageous method of fulfilling the Government’s need, with regards to price, efficiency, past performance, and experience.

9. Other Facts:

None.

10. Interested Sources:

ASM Research LLC (ASM).

11. Actions to overcome barriers:

Market research is currently underway to identify potentially viable solutions that can be made to meet Government needs. The effort to replace the existing VSSM system is expected to be competitive.

COORDINATION:

12. Technical/Functional Representative:

I certify that the information provided in this justification, is accurate and complete to the best of my knowledge and belief.

Oscar Montoya Jr., Project Manager

13. Requirements Certification:

17 MAR 2020

Date

MONTOYA.OSCA

Digitally signed by

MONTOYA.OSCAR.JR.1124874

R.JR.1124874072 072

Date: 2020.03.17 08:03:34 -05'00'

I certify that the information provided in this justification, is accurate and complete to the best of my knowledge and belief.

Oscar Montoya Jr., Project Manager

17 MAR 2020

Date

14. Fair and Reasonable Cost Determination:

I have determined that the anticipated cost to the Government for this contract action is fair and reasonable.

Click here to enter a date.

Marc A. Cypert Date

Contracting Officer, EMS-CD

15. Legal Review:

I have reviewed this justification and have found it to be legally sufficient.

Kevin E. Bolin Date

Office of General Counsel

16. Contracting Officer:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Marc A. Cypert Date

Contracting Officer, EMS-CD

17. Competition Advocate:

Based on the foregoing justification, I hereby approve the procurement of Veterinary Services

System Management support on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(c)(1), subject to availability of funds, and provided that the supplies and/or services herein described have otherwise been authorized for acquisition.

LEWIS.JAKE.LENO.1061296 Digitally signed by

LEWIS.JAKE.LENO.1061296944

Date: 2020.03.18 12:50:01 -04'00' Click here to enter a date.

Jake L. Lewis Date

Competition Advocate (J-4)

APPROVAL:

MONTOYA.OSCA

Digitally signed by

MONTOYA.OSCAR.JR.1124874

R.JR.1124874072 072

Date: 2020.03.17 08:03:54 -05'00'

CYPERT.MARC Digitally signed by

O.A.1292315739 Date: 2020.03.17 15:16:47 -05'00'

CYPERT.MARCO.A.1292315739

BOLIN.KEVIN.

E.1393687939

Digitally signed by

BOLIN.KEVIN.E.1393687939

Date: 2020.03.17 15:21:34

-05'00'

CYPERT.MARC Digitally signed by

O.A.1292315739 Date: 2020.03.17 15:17:01 -05'00'

CYPERT.MARCO.A.1292315739

18. Head of Contracting Activity (or designee):

Based on the foregoing justification, I hereby approve the procurement of Veterinary Services

System Management support on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(c)(1), subject to availability of funds, and provided that the supplies and/or services herein described have otherwise been authorized for acquisition.

John M. Tenaglia Date

Head of Contracting Activity (HCA) (J-4)

TENAGLIA.JOH Digitally signed by

N.M.1154945926 Date: 2020.03.23 10:23:12 -04'00'

TENAGLIA.JOHN.M.1154945926